Peugeot Sees Results From the Upmarket Strategy image

Peugeot CEO Maxime Picat says the result’s of the automaker’s efforts to move upmarket, after the company reported a loss of 5 billion euro in 2012.

“Just 15 percent of sales for the 208 are entry-level models while 35 percent are our highest trim lines,” said Peugeot CEO Maxime Picat.

Peugeot’s best selling model and the 4th overall in Europe is the 208 subcompact, with a price range varying between 12,050 euro and 24,500 euro. In January and February the automaker sold 38,621 units of the 208 model in Europe. Picat is confident that the 208 model and its growing line of variants, such as the high-performance 208 GTi and the new 2008 SUV-styled crossover, will bring the automaker increased profit margins per sale.

“Cars like the 2008 used to represent a fraction of sales in the B [subcompact] segment and in 10 years it will be 20 percent,” Picat said. “We believe the 2008 has the perfect balance of robustness and functionality that is needed for the segment.”

Picat said that his goal is to bring Peugeot to a more upmarket level and to reach different groups of customers, a different approach than the one of Citroen’s which already has the upscale DS sub-brand to attract premium car customers.